Stephen Simpson, CFA
Stephen Simpson, CFA
Stephen Simpson, CFA
Wed, Jun. 29, 10:53 AM
- "We believe that Weyerhaeuser's (WY +4.2%) primarily domestic focused business will allow fundamentals to stay well-insulated from the outside noise," says D.A. Davidson, upgrading to Buy from Neutral following the stock's Brexit-related drop.
- The $33 price target suggests near-20% upside from yesterday's close.
- Investing in WY is essentially a play on the domestic housing recovery and American timberland as an asset class, says the team, and thus relatively uncorrelated with what's happening across the pond.
- Should the U.S. economy slow down, it means lower interest rates, which should make WY's 4.3% dividend especially attractive.
Mon, May 9, 3:36 PM
- Weyerhaeuser (WY -2.1%) is downgraded to Neutral from Buy with a $33 price target, trimmed from $34, at DA Davidson, following Q1 earnings that topped analyst estimates while revenues came in below expectations.
- Davidson says the main source of the variance was share count, as it used anticipated shares outstanding at quarter-end while WY used the weighted average shares outstanding, which was substantially lower; assumptions on share count could factor in variance again in Q2, although to a smaller magnitude, the firm says.
- The firm cautions that it would take a minimum of a full quarter to be able to better calibrate WY's acquisition of Plum Creek, and estimates were likely to be revised down at that time.
- Davidson now expects WY to post full-year EPS of $0.62 in 2016 and $0.99 in 2017, down from a respective $1.03 and $1.25 previously.
- Now read Weyerhauser: The stars are aligning
Dec. 7, 2015, 5:40 PM
Nov. 9, 2015, 9:06 AM
- The two companies are currently holding a joint conference call to discuss the deal with investors and analysts.
- Webcast and presentation slides
- WY -5.35% to $28.84 and PCL +13.6% to $45.75 premarket.
- The deal is expected to close late in Q1 or early in Q2, and the merged company's 13-member board will have eight from WY and five from PCL. The $1.24 per share annual dividend is maintained for WY holders, but represents a 13% increase for PCL owners. FAD per share accretion is expected in year one.
- The merger is not contingent on WY's ongoing strategic alternatives review of its cellulose fibers business. Options are still business as usual, or a sale/spin of the unit.
- Previously: Weyerhaeuser acquiring Plum Creek to make $23B timber giant (Nov. 8)
Apr. 25, 2014, 11:42 AM
- Timberlands segment net sales of $377M up from $364M in Q4, with contribution to pre-tax earnings of $164M up from $134M. The Q2 outlook is for comparable earnings as boosted Chinese export log sales will be more than offset by lower average prices.
- Wood Products segment net sales of $898M fell from $926M in Q4, with contribution to pre-tax earnings of $64M up from $58M, "despite the effect of the severe winter weather." The Q2 outlook is for significantly higher earnings thanks to seasonally higher sales across all product lines and slightly higher prices for OSB and engineered wood products.
- Cellulose Fibers segment net sales of $461M vs. $478M in Q4. Q2 outlook is for significantly higher earnings.
- Real Estate net sales of $248M down from $488M due to seasonal issues.
- Previously: Weyerhaeuser EPS beats, revenue misses
- WY +1.7%
Aug. 20, 2013, 9:07 AM
May 14, 2013, 8:35 AM
Aug. 27, 2012, 1:27 PM
Weyerhaeuser (WY +1%) gets a bump higher after BMO upped the shares to Market Perform earlier today, speculating that surging lumber and panel prices should give a boost to its bottom line and prompt the company to pay out larger cash distributions in 2013 and 2014. Barron's also highlighted the company over the weekend, noting that signs of a housing rebound are likely to lift the shares.| Aug. 27, 2012, 1:27 PM | 1 Comment
Feb. 6, 2012, 12:13 PM
Feb. 3, 2012, 10:47 AM
Weyerhaeuser (WY +4.2%) trades up in relief after its Q4 beats consensus estimates despite a 62% Y/Y drop in earnings on slowing sales and write-downs. Wood products - the company's biggest segment by sales - saw revenue decline 14% Q/Q, while its loss from continuing operations also widened sequentially, but the hit was not as great as anticipated.| Feb. 3, 2012, 10:47 AM
Jun. 27, 2011, 12:49 PM
Universal Forest Products (UFPI -11.7%)) drops to a new 52-week low after saying sales through May were worse than expected, and demand will be weak for the remainder of FY11. As a result, it plans to cut costs through layoffs and reduced spending.| Jun. 27, 2011, 12:49 PM
Jun. 7, 2011, 2:52 PM
International Paper (IP +1.1%) and Temple-Inland (TIN +42.3%) are in focus after IP's $30.60/share bid was rejected despite being a 46% premium to Monday's closing price. Other packaging and paper stocks rally on calls from bullish analysts that the industry is heading for consolidation: PKG +6.9%, WY +6.2%, BZ +5.6%, KS +4.3%, RKT +3.1%.| Jun. 7, 2011, 2:52 PM
May 27, 2011, 9:26 AM
Weyerhauser (WY) -3.4% premarket after shares are downgraded to Sell from Hold at Deutsche Bank, citing mounting evidence of a downward correction in West Coast log markets. "The stock has been heavily promoted in recent months by 'timber bulls' and driven by the big gains in Chinese export volumes," setting up shares for a pullback.| May 27, 2011, 9:26 AM